Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

From InsightSquared
Quote in Market Research

You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

More SaaS + Software Stats

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

SaaS solutions have the highest security features with 95% security failures due to human error

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

More Market Research Stats

Cloud application services (SaaS) to reach $126 billions by the end of 2021

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

54% treat upselling and add-on sales as high priority

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available